FCA dismiss claims for adviser fee reimbursement
The FCA has confirmed that regulatory fees for financial advisers will be £68m next year - an 18.7% drop on 2013/14 - whilst moving to dismiss claims for a reimbursement of 'overcharged' adviser fees.
This follows recent calls from trade bodies that 15% of total annual funding allocated to fee block A13 - advisors, arrangers, dealers or brokers - is too large a share, with the regulator stating that "it is not only recovered from financial advisers". The FCA estimates that the amount recovered from solely financial advisers is around £6m (8.5%) and the number of financial advisers to be 55% of the total firms that pay fees in A.13.
It also disagrees with that advisers have been 'overcharged' in previous years, stating that "creating a new fee-block will always lead to winners and losers in the short-term", and that this does not mean that some firms have been historically 'overcharged' any more than others have been 'undercharged'. It then goes on to outline that the FCA "are recovering the same amount of money from investment intermediaries as previously."
The FCA also confirm unchanged minimum fees for small firms for 2014/15 - typically up to £100,000 of total annual income - and goes on to state that in its October 2014 fees policy CP there are plans to to consult on a range of alternatives for calculating the minimum fees and keep them under review.
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
Blogs
Mark Eaton: Is 2026 the year brokers die out?
First-time Buyer
Improved affordability sparks 20% rise in first-time buyers: Nationwide
Inflation
Further rate cuts dampened as inflation rebounds to 3.4%
Vida
Vida launches high LTV 'Pathway' mortgage range
FCA
Tribunal upholds £2m FCA fine for 'corrupt and dishonest adviser'
Melton Building Society
Melton BS launches 100% LTV mortgage